EXAM PRACTICE Questions

Which of the following lists consists of support activities?

-HR management -Tech development, -Procurement -General administration

According to the Five Forces Model, an attractive industry would include all of the following characteristics EXCEPT:

-Low barriers to entry

A competitive advantage based on inimitability can be sustained for at least some time, if it has the following characteristics:

-Physical uniqueness -Path dependency -Causal ambiguity -Social complexity

Which of the following is NOT an entry barrier to an industry?

-bargaining power of suppliers -profit maximization

Writer Button Inc. and Horner Inc. are two companies that have been manufacturing typewriters for almost 30 years. Due to the reduced demand for typewriters today, both companies' average return on invested capital is approximately -5 percent. The current industry average is 2 percent. In this scenario, Writer Button Inc. and Horner Inc. most likely have:

Competitive parity with each other

Most consumers and investors today want the firms they do business with to look beyond just the profit motive. In fact, they want firms that behave legally and ethically while also giving back to their communities via philanthropic activities. The framework that attempts to reconcile these wants is known as

Corporate social responsibility

The goal of a good strategy is focused primarily on

Creating superior value while containing costs

Growth rates for GDP (gross domestic product), levels of employment (and unemployment) and interest rates are factors in what segment of the general environment?

Economic

Motel 6 tracks the number of rooms in the budget segment of the hospitality industry as well as the difference between the average daily room rate the consumer price index (CPI) to understand trends in their industry and to improve the accuracy of their forecasts. This is an example of:

Environmental monitoring

Good Inc.'sGreen and Good Inc., a multinational company, relies on its media partner Omnisignal to regularly advertise its offers, sales, and new products. OmniSignal is invested in this relationship because it generates most of its revenue from advertising Green and Good's products. In this scenario, OmniSignal is Green and

External stakeholders

Which of the following examples demonstrates how successful organizations manage their primary activities?

Hewlett Packard has cut the lead time from five days t one by employing JIT inventory management

In the Five Forces model, the bargaining power of a buyer is high when:

LOW: switching costs, product differentiation of suppliers HIGH: threat of backwards integration by buyers

In the SWOT framework, environment and are environmental conditions external that typically impact all the firms in the same competitive

Opportunities and threats

are typically embedded in unique routines and practices that have evolved and accumulated over time such as effective work teams.

Organizational capabilities are typically embedded in unique routines and practices that have evolved and accumulated over time, such as effective work teams.

Which of the following three important stakeholder attributes should managers pay special close attention to in order to formulate an effective stakeholder impact analysis?

Power, legitimacy, and urgency

A travel agent adds value by creating an itinerary that includes transportation, accommodations, and activities that are customized to your budget and travel dates. In terms of the value-chain analysis, this is an example of a

Service

When Nordstrom, the Seattle-based department store chain, aids customers with after-sales support, it exemplifies which primary value-chain activity?

Service

In order to better achieve a competitive advantage, firms must now adopt a holistic approach towards satisfying multiple stakeholders opposed to focusing on the needs of their stockholders. This integrative approach is referred to as

Stakeholder strategy

is best described as an integrative management field that combines analysis, formulation, and implementation in the quest for competitive advantage

Strategic management

The three key types of resources that are central to the resource-based view of the firm

Tangible, intangible resources, and organizational capabilites

Harley-Davidson markets motorcycles, clothes, toys, and restaurants. It uses its strong which is

brand image; an intangible resource

Batt Packs recently came under criticism when a newspaper article revealed that the company's production plant had leaked a chemical compound into a sensitive wetland ecosystem. Although use of the chemical was not technically prohibited by law, the local government levied a small fine for cleaning up the spill. Environmental groups, however, argued that continued use of the chemical was damaging to the local wildlife and threatened to organize a boycott against Batt Packs. What should Batt Packs do to ensure that it meets its ethical responsibilities?

design batteries without the chemical and market them as environmentally friendly

Digital and internet-based technologies have led to an explosion of online travel sites that enable consumers to shop for the best price on airline travel, hotels, and rental cars. This has resulted in an increase in thein the travel industry.

environmental scanning

All of the following are elements that comprise the general environment EXCEPT:

industrial trends

In order to be considered strategic resources that contribute competitive advantage, they must have several characteristics. Which of the following is not one of these?

inexpensive to imitate

A marketing department that promises delivery faster than the ability of the production department to produce is an example of a lack of understanding of

interrelationships among functional areas and firm strategies

ECO Jeans, Inc. had a mission to become the leading producer of environmentally friendly blue jeans, an emerging and in-demand category in the apparel industry. Its strategy involved leveraging a network of organic cotton farmers and suppliers of environmentally responsible synthetic materials to create a product that is durable, attractive, affordable, and 100% recyclable. However, because it did not upgrade its outdated production facilities, ECO Jeans could not assemble its products at a low-enough cost to offer the jeans at a price that was attractive to customers. ECO Jeans' strategy failed because

it was not backed up with strategic commitments

Groupon offers online coupons for bargains at local shops and restaurants. Which of the following is a reason that rivals are limiting its growth?

its core capability is easily imitated

Making comparisons between a firm and its most direct rivals is useful because firms within the same strategic industry group have strategies.

similar

John is a bit confused about the difference between stakeholders and stockholders. You meet with John and inform him that the main difference is that

stakeholders can be both internal and external while stockholders own shares of a firm and are classified as internal to the firm.

Bright Lighting was the first company to start selling LED light bulbs in its country -a product that gained popularity among diverse groups. Soon, other companies started to sell their own brands of LED bulbs, thereby giving Bright Lighting ample competition. In response, Bright Lighting decided to limit its LED light bulbs to outdoor models. However, it ensured that these models were the longest-lasting and lowest-priced on the market. With this innovation, Bright Lighting consistently outperformed its competitors for ten years. In this scenario, Bright Lighting maintained a through its innovative strategy.

sustainable competitive advantage

Coca-Cola has developed data analytic technologies to produce orange juice that meets the taste demands of a global customer base. This is an example of using which value chain support activity?

technology development